Dhanteras marks the beginning of Diwali, and is considered auspicious for buying gold by Hindus. Gold prices had hit a record high of 56,191 rupees per 10 gm in August, which had further hurt consumer demand. While gold sales are mostly lower compared to last year in terms of volume, higher prices have meant that sales are almost on par with last year.

High prices and worries about the ongoing COVID-19 pandemic dragged down gold demand in India during Dhanteras by 15-20% on year, jewellers said. However, compared to near zero sales during Mar-May due to the coronavirus-related lockown, jewellers were glad that consumers had ventured out to make purchases.

"We have witnessed a growth of 70% on year in sales through e-commerce and digital channels, online advances and digital booking for store sales and use of other online tools have been 15% of total business done," Suvankar Sen, chief executive officer, Senco Gold and Diamonds said.

Compared to Dhanteras last year, gold prices are 33% higher right now. "We have seen a spurt in demand as there is pent-up demand in the market...Customers are coming out and buying, and we are sure that this trend will continue for the rest of the financial year," Saurav Banerjee, chief financial officer, Tribhovandas Bhimji Zaveri, said.

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